I remember too when people seemed to be friendlier with others who shared their interest, although I always associated the "wave" with the newest enthusiasts. The people I have known that entered the recreational boating population were the first to wave, as it was a way of sharing and showing their happiness with the new boat. As time went on the wave either changed to a nod of acknowledgement or even an informal salute. All this is OK at headway speed encounters and passes by. However, most experienced boaters keep both hands on the helm at higher speeds. This, of course, is prefered, even with adequate distance between the vessels.
Another reason for the decline may be the increase in the number of boats on the water, which requires more concentration on the part of the operator. Also consider that road rage has evolved into water rage and some people would rather keep to themselves, lest a hand movement be mis-interpreted.
Just my thoughts, nothing more.